Does the Mr. Sandless release agreement address claims related to securities statutes?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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| THIS AGREEMENT ("Agreement") is made and entered into this day of, 20 | |
|---|---|
| by and between Mr. Sandless Franchise LLC, a Pennsylvania limited liability company having its principal place | |
| of business located at 2970 Concord Rd, Aston, PA 19014 (the "Franchisor"), and, a | |
| with an address at (hereinafter referred to as "Releasor"), wherein | |
| the parties hereto, in exchange for good and valuable consideration, the sufficiency and receipt of which is | |
| hereby acknowledged, and in reliance upon the representations, warranties, and comments herein are set forth, | |
| do agree as follows: |
1. Release by Releasor:
Releasor does for itself, its successors and assigns, hereby release and forever discharge generally the Franchisor and any affiliate, wholly owned or controlled corporation, subsidiary, successor or assign thereof and any shareholder, officer, director, employee, or agent of any of them, from any and all claims, demands, damages, injuries, agreements and contracts, indebtedness, accounts of every kind or nature, whether presently known or unknown, suspected or unsuspected, disclosed or undisclosed, actual or potential, which Releasor may now have, or may hereafter claim to have or to have acquired against them of whatever source or origin, arising out of or related to any and all transactions of any kind or character at any time prior to and including the date hereof, including generally any and all claims at law or in equity, those arising under the common law or state or federal statutes, rules or regulations such as, by way of example only, franchising, securities and anti-trust statutes, rules or regu
Source: Item 23 — RECEIPTS (FDD pages 42–167)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the release agreement does address claims related to securities statutes. The agreement requires the franchisee (referred to as the 'Releasor') to release Mr. Sandless (the Franchisor) from any and all claims, which includes those arising under franchising, securities, and anti-trust statutes, rules, or regulations. This release covers claims of any kind or character at any time prior to and including the date of the agreement.
This means that by signing the release, a Mr. Sandless franchisee is giving up their right to sue Mr. Sandless for any violations of securities laws that may have occurred before the agreement was signed. This could include claims related to the sale of the franchise itself, if it were deemed to be a security. The franchisee also promises not to institute any action against Mr. Sandless in any court or tribunal for any matter or claim arising before the execution of the agreement.
However, it is important to note that Washington residents have an exception to this general release. The release does not apply to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This means that Washington franchisees retain their rights to pursue claims under Washington state franchise law, despite signing the general release. Prospective franchisees should carefully review the release agreement with their legal counsel to fully understand the scope of the claims they are waiving and the implications of doing so.